In-Depth Analysis
Zimbabwe
External factors have continued to place added pressure on an already strained economy. Zimbabwe once again faces a period of extreme macroeconomic instability as political fragilities have seen the economy come undone again. Inflation is running rampant, the local currency struggles to gain traction, and nearly the entire country is out of formal employment.
With Covid-19 infections once again on the rise following the proliferation of the more contagious Delta variant, Zimbabwe opted to reintroduce strict new lockdown restrictions and, like in 2020, arrested thousands. Although Zimbabwe has reached the bottom of its economic slump, weak fundamentals imply that the country will struggle to make up for the lost years in 2019 and 2020. We expect a technical rebound this year, with real GPD growth forecast at 4.5%. Higher commodity prices and an improvement in the agricultural sector should drive this growth. (Source: Zimbabwe Quarterly Update, published July 2021)
Macroeconomic Data
(2020)
|
Fiscal Balance (as a % of GDP) |
2.6 |
|
Consumer Price Index (% change y-o-y, avg) |
557.2 |
|
Current Account Balance (as a % of GDP) |
0.5 |
|
Real GDP (annual % change) |
-10.5 |
|
GDP per Capita, US$ |
1,059.0 |
|
Import Cover (months) |
0.06 |
|
Population, million |
14.9 |
| Total External Debt (as a % of GDP) |
95.0 |